Nvidia poised to surpass Apple as World’s Second-Largest Company?

Nvidia, a leading artificial intelligence chip maker, has surged to become the third-largest company in the US, surpassing tech giants like Google and Amazon. The company is on track to overtake Apple and claim the second spot in terms of market capitalization. Currently, Microsoft holds the top position globally. Nvidia’s remarkable growth, particularly in the AI chip market, has propelled its market capitalization from $1 trillion to $2 trillion in just nine months, outpacing major corporations like Amazon, Google’s Alphabet, and Saudi Arabia’s Aramco.

As of now, Nvidia’s market capitalization stands at approximately $2.38 trillion, closing the gap with Apple, which holds the second spot at $2.61 trillion. The company’s dominance in the AI chip market, with an 80% share, has attracted significant investments, contributing to a 95% increase in its stock value this year. Nvidia’s weight in the S&P 500 index exceeds 5%, underscoring its impact on driving Wall Street to record highs.

Despite Apple’s consistent performance, Nvidia’s rapid ascent raises the prospect of surpassing Apple’s market capitalization in the near future. Apple, with a market cap of $2.61 trillion, faces challenges related to slower iPhone sales, making room for Nvidia to potentially claim the second position globally. Nvidia’s recent success stems from the growing demand for AI-related technologies, with projections indicating significant spending growth from $200 billion to $1.8 trillion in AI technology by 2030.

However, Apple’s diverse revenue streams and expanding installed base of devices, currently exceeding 2.2 billion, present challenges for Nvidia to sustain its high growth rates. Apple’s projected annual revenue of $512 billion by fiscal 2027, driven by a 7.5% annualized growth rate, poses a substantial hurdle for Nvidia, which would need to more than double its market cap to match Apple’s projected $5 trillion market cap by 2030. The competition highlights the contrasting trajectories of these tech giants and their strategies to secure future market dominance.

Conclusion: Nvidia’s surge challenges Apple’s dominance, future dynamics to determine market rankings